What do Bugs Bunny, Batman and Steve Case have in common? They are all
now brothers in the same corporate family. So you ask, "What's up
with that, Doc?" From CNN to BMX Business News, Dancer in the Dark to The
Sopranos, old-school publications like Time to new-school rap
and roll, AOL Time Warner has now got it all.
A year and a day after AOL and Time Warner announced their merger on January
10, 2000, the FCC issued its final approval of it. One of the most
contentious issues to be addressed in the merger was open access--whether
or not companies like AOL Time Warner can restrict access to their cable
lines to competing Internet Service Providers. Included in the approval were
conditions, written by the Federal Trade Commission, requiring AOL to provide
access to its newly acquired, high-speed cable network to at least a few
other ISPs. Mindspring/Earthlink became the first company to complete a deal
for access to AOL's new network. The FCC also required AOL to make sure that
the next generation of its dominant instant messaging software will interact
with other instant messaging systems.
The competition is already squawking. Allan Sloan, Newsweek's Wall
Street editor, wrote in the Washington Post, "First, no matter
what anyone at the new company says, journalism--going out and looking for
the truth, then presenting it to people--at AOL Time Warner will be less
important than it was at Time Warner. Where, in turn, journalism was further
down the food chain than it had been at the old Time Inc." Then, as
if to drive Mr. Sloan's point home, CNN fired 400 employees.
Some media critics praised the relatively mild conditions imposed on the
merged company. Andrew J. Schwartzman of Media Access Project said of the
FCC decision "We got most of what we needed to protect free speech,
economic growth, and competition in this new interactive medium." But
the conditions are not open access. The FCC only required AOL Time Warner
to provide 4 or 5 nonaffiliated companies the ability to offer services on
the AOL cable system. More significantly, the rules do not apply to other
cable operators.
The restrictions were passed on a 3-2 party-line vote, and FCC Chairman
William Kennard resigned on January 19, 2001. The new chair of the FCC, Michael
Powell (yes, he is the General's son), said in his dissent that saying that
the "Majority [gave] in too much to their collective imaginations" in
imposing any conditions at all.
Nobody who has visited Commissioner Powell's Main Street-inspired website
(www.fcc.gov/commissioners/powell) should have any doubt about his imagination.
Just like those "Morning Again in America" commercials, Mr. Powell
seems to embrace a sunny view of an America where June and Ward Cleaver sip
coffee with Mr. Wilson commiserating over the latest terrible problems posed
by that annoying Dennis the Menace.
Despite the fact that the FCC has officially opened a Notice of Inquiry
on open access, meaning they will eventually schedule hearings on the topic,
it is unlikely that the new commission chair will support any progress on
this front. The FCC has yet to require any other cable company to provide
access to other Internet service providers. And the giant AT&T combine
(which controls the current legal maximum of 32.8 % of the U.S. cable market)
is certainly not going to do so voluntarily. (See "The Future of Openness
on the Internet, MediaFile, May/June 2000.)
So is that all folks? Should we grin and bear it as we watch the corporate
colonization of the Internet? In a word, hell no. Congress is gonna have
to decide this issue, not the FCC. Now is the time to educate yourself and
your members of Congress about the future of the Internet.
National media watchdogs (www.nogatekeepers.org) and a coalition of Internet
service providers (www.opennetcoalition.org) have excellent websites dedicated
to the open access issue. Representatives Rick Boucher and Bob Goodlatte
introduced legislation in the last Congress that would have established a
national open access policy. Let's hope their legislation will be reintroduced.
This Congress may look more favorably on open access by virtue of the fact
that many media corporations that do not own cable systems (ABC/Disney, Microsoft,
etc.) have come to see the importance of open access to their continued profitability.
Absent the voices of people like you though, Congress will be tempted to
craft an "open access" policy that guarantees the right of big
corporations to be heard and seen on the Internet, but will leave the rest
of us out.
Marshall Runkel is an assistant to City Commissioner Erik Sten in Portland,
Oregon.
Portland was the first city in the country to adopt an open access policy
as a condition of transferring its local cable franchise from TCI to AT&T
in December of 1998. AT&T sued the City of Portland for adopting the
policy. The Federal District Court for Oregon upheld the city's right to
adopt an open access policy. But, on appeal, the 9th Circuit Court ruled
that Portland did not have the right to impose the policy because providing
Internet service over cable is a telecommunications service governed by
state and federal law, not a cable service which local governments have
much more discretion to regulate. At present, cable companies in the 9th
Circuit are arguing that they should not be required to pay cable franchise
fees for providing Internet service while simultaneously maintaining that
their Internet service should not be subject to the open access requirements
embedded in national telecommunications law. |